LOS ANGELES--(BUSINESS WIRE)--Hanmi Financial Corporation (NASDAQ: HAFC), the holding company for Hanmi Bank (the “Bank”), today reported second quarter net income of $55.8 million, or $1.77 per diluted share. Net income included pretax net income of $8.6 million, a 16% increase from $7.4 million in the first quarter of 2012, and a net tax benefit of $47.2 million resulting from a deferred tax asset (“DTA”) valuation allowance reversal. With multiple consecutive quarters of profitability and continued credit improvement, Hanmi was able to substantially reverse the valuation allowance recorded against its DTA, generating an income tax benefit of $53.1 million in the second quarter, offset by a current tax provision of $5.9 million. The reversal resulted in an increase in tangible book value to $11.02 per share at June 30, 2012, an increase of $1.74 per share, or 18.8%, compared to March 31, 2012. It is expected that an additional DTA valuation allowance reversal will occur in the next two quarters approximating an additional $10.1 million, for a total recognized DTA of approximately $63.2 million by year end. Year-to-date, net income in 2012 totaled $63.1 million, or $2.00 per diluted share. All per share results are adjusted to reflect the 1-for-8 reverse stock split, which became effective on December 19, 2011.
“Hanmi’s return to profitability in the past seven quarters is a direct result of the successful execution of our strategic turnaround plan and led to the reversal of the valuation allowance against our DTA. Our confidence in the sustainability of our future profitability is reflected in the decision,” said Jay S. Yoo, President and Chief Executive Officer. “More importantly, the ongoing improvement in asset quality, expanding net interest margin, improving operating efficiencies and contributions for our SBA loan originations and sales were the real highlights of the second quarter.”
| Hanmi Financial 2012 Quarterly Financial Highlights | |||||||||||||||
| At or for the Three Months Ended | |||||||||||||||
| 6/30/2012 | 3/31/2012 | 6/30/2011 | |||||||||||||
| (In Thousands) | |||||||||||||||
| Net income | $ | 55,775 | $ | 7,341 | $ | 8,001 | |||||||||
| Net income per diluted common share | $ | 1.77 | $ | 0.23 | $ | 0.42 | |||||||||
| Total assets | $ |
2,846,652 |
$ | 2,771,471 | $ | 2,710,835 | |||||||||
| Total net loans | $ | 1,878,367 | $ | 1,896,827 | $ | 1,959,564 | |||||||||
| Total deposits | $ | 2,385,107 | $ | 2,363,726 | $ | 2,398,375 | |||||||||
| Net interest margin | 3.84 | % | 3.69 | % | 3.65 | % | |||||||||
| Efficiency ratio | 61.07 | % | 66.56 | % | 72.67 | % | |||||||||
| Tangible common equity per common share | $ |
11.02 |
$ | 9.28 | $ | 10.39 | |||||||||
| Non-performing assets | $ | 46,214 | $ | 51,474 | $ | 145,836 | |||||||||
| Non-performing assets/Total assets | 1.62 | % | 1.86 | % | 5.38 | % | |||||||||
| Allowance for loan losses/Total gross loans | 3.69 | % | 4.10 | % | 5.27 | % | |||||||||
| Allowance for loan losses/Total non-performing loans | 159.26 | % | 161.41 | % | 75.45 | % | |||||||||
| Classified assets | $ | 143,736 | $ | 230,706 | $ | 388,712 | |||||||||
| Classified assets to Bank Tier 1 Capital and ALLL |
32.20 |
% | 54.00 | % | 101.28 | % | |||||||||
| Hanmi Financial | |||||||||||||||
| Total Risk-Based Capital |
20.01 |
% | 18.74 | % | 13.92 | % | |||||||||
| Tier 1 Leverage Capital |
14.69 |
% | 13.44 | % | 9.09 | % | |||||||||
| Tangible equity/Tangible assets |
12.20 |
% | 10.55 | % | 7.26 | % | |||||||||
Financial Highlights (at or for the period ended June 30, 2012)
- Hanmi posted its seventh consecutive quarter of profitability.
- The reversal of the DTA valuation allowance contributed $53.1 million, or approximately $1.69 per diluted share, to second quarter net income.
- Net interest margin (“NIM”) was 3.84% in the second quarter of 2012, up from 3.69% in the first quarter of 2012 and 3.65% in the second quarter of 2011, reflecting a 29 basis point improvement in cost of funds from the second quarter of 2011. Effective management of the deposit mix contributed to this improvement in the second quarter of 2012. NIM in the first six months of 2012 improved to 3.77% from 3.66% in the first six months of 2011.
- Hanmi originated $54.0 million of SBA 504 and 7(a) loans and $113.3 million of other commercial loans for the second quarter of 2012. Year to date, SBA loan originations totaled $90.2 million and other commercial loan originations totaled $180.2 million. In addition, $67.4 million of one year adjustable rate single family residential mortgage loans were purchased in the first quarter of 2012.
-
Asset quality improved substantially, during the second quarter of
2012, with fewer non-performing assets (“NPAs”), lower levels of
delinquent loans, and lower net charge-offs.
- The ratio of classified assets to the allowance for loan losses (“ALLL”) plus the Bank’s tier 1 capital dropped to 32.20% at June 30, 2012 from 54.00% at March 31, 2012 and 101.28% at June 30, 2011. Classified assets at June 30, 2012 were $143.7 million compared to $230.7 million and $388.7 million at March 31, 2012 and June 30, 2011, respectively.
- NPAs declined to $46.2 million, or 1.62% of total assets, at June 30, 2012, from $51.5 million, or 1.86% of total assets, at March 31, 2012, and were down significantly from $145.8 million, or 5.38% of total assets, at June 30, 2011. During the second quarter, $44.3 million in note sales contributed to the reduction in NPAs, but generated a loss on sale of $5.3 million. Year-to-date, note sales totaled $73.0 million and generated a loss on sale of $7.7 million.
- Delinquent loans, which are 30 to 89 days past due and still accruing, totaled $4.7 million, or 0.24% of gross loans at June 30, 2012, down from $10.5 million, or 0.53% of gross loans at March 31, 2012, and down significantly from $15.6 million, or 0.76% of gross loans, at June 30, 2011.
- Total net charge-offs during the second quarter of 2012 were $13.4 million, up slightly from $11.3 million in the first quarter of 2012, and down from $16.5 million in the second quarter of 2011.
- Classified loan inflows totaled $7.5 million for the second quarter of 2012, down significantly from $31.6 million during the first quarter of 2012. Outflows of classified loans totaled $94.3 million during the second quarter of 2012, as compared to $84.5 million in the first quarter of 2012.
- Operating efficiency improved to 61.07% during the second quarter of 2012 from 66.56% in the first quarter of 2012 and from 72.67% during the second quarter of 2011.
- The Bank’s tangible common equity to tangible assets ratio at June 30, 2012 was 14.34%, up from 12.71% at March 31, 2012.
- At the holding company level, the tangible common equity ratio was 12.20% and the tangible book value was $11.02 per share at June 30, 2012.
Capital Management
“The reversal of the DTA valuation allowance had a substantial impact on our tangible common equity ratios and boosted book value per share by $1.69,” said Lonny Robinson, Executive Vice President and Chief Financial Officer. “The improvement in our ratio of classified assets to the ALLL plus the Bank’s tier 1 capital to 32.20% is a critical accomplishment and below the 40% regulatory target for this ratio. We believe we have made substantial progress to improve the financial position of the Bank on the three most important regulatory requirements: strong capital levels, quality core earnings, and improving credit metrics. We are hopeful our regulators will agree with this assessment. All of our capital levels remain well above those required by regulatory standards.” The following table shows the Company’s and Bank’s capital ratios:
| Hanmi Financial | June 30, | March 31, | June 30, | |||||||||
| 2012 | 2012 | 2011 | ||||||||||
| Total risk-based |
20.01 |
% | 18.74 | % | 13.92 | % | ||||||
| Tier 1 risk-based |
18.74 |
% | 17.46 | % | 11.92 | % | ||||||
| Tier 1 leverage |
14.69 |
% | 13.44 | % | 9.09 | % | ||||||
| Tangible common equity |
12.20 |
% | 10.55 | % | 7.26 | % | ||||||
| Hanmi Bank | June 30, | March 31, | June 30, | |||||||||
| 2012 | 2012 | 2011 | ||||||||||
| Total risk-based |
19.06 |
% | 17.74 | % | 14.02 | % | ||||||
| Tier 1 risk-based | 17.79 | % | 16.45 | % | 12.72 | % | ||||||
| Tier 1 leverage |
13.95 |
% | 12.67 | % | 9.70 | % | ||||||
| Tangible common equity |
14.34 |
% | 12.71 | % | 10.33 | % | ||||||
Results of Operations
Net interest income, before the provision for credit losses, totaled $25.2 million for the second quarter of 2012, up 2.6% from $24.5 million in the first quarter of 2012 and down 1.2% from $25.5 million in the second quarter of 2011. Interest and dividend income was down 1.1% from the first quarter of 2012 and down 8.1% from the second quarter of 2011, while interest expense fell 16.8% and 32.9% compared to the first quarter of 2012 and the second quarter of 2011, respectively. In the first six months of 2012, net interest income, before the provision for credit losses, totaled $49.7 million, down 3.6% from $51.6 million in the first six months of 2011.
Average yield on loans was 5.47% for the second quarter and 5.52% for the first six months in 2012. The yield on the investment securities portfolio, which accounted for 15.8% of average earning assets, improved during the second quarter of 2012 to 2.25% from 2.12% for the first quarter of 2012, but down from 2.54% during the second quarter of 2011.
“We booked a $1.4 million gain on the sale of $69.2 million in security investments in the second quarter to recognize some of the premium values on these assets. While loan demand is starting to improve, we will continue to hold and manage a sizeable securities position for the foreseeable future,” said Robinson, “Our goal is to deploy this excess liquidity in high quality loan originations when they are available in the market place.”
With the mix of deposits continuing to improve, the cost of interest-bearing liabilities continues to decline. The cost of interest-bearing liabilities was down 18 basis points to 1.12% in the second quarter of 2012, when compared to the first quarter of 2012, and down 29 basis points from the second quarter of 2011. For the first six months of 2012, the cost of interest bearing liabilities declined 24 basis points to 1.21%.
Hanmi’s net interest margin improved 15 basis points to 3.84% in the second quarter of 2012, compared to the first quarter of 2012, and grew 19 basis points from the second quarter of 2011. Lower cost of deposits at 0.69% in the second quarter of 2012, compared to 0.85% for the first quarter of 2012 contributed to this improvement.
The provision for credit losses was $4.0 million in the second quarter compared to $2.0 million in the first quarter of 2012 and none a year ago. Note sales of $44.3 million contributed to total charge offs of $8.4 million and an additional loss on sale of these loans of $5.3 million in the second quarter of 2012. The total net charge offs for the second quarter of 2012 was $13.4 million, as compared with $11.3 million net charge offs in the first quarter of 2012 and $16.5 million net charge offs in the second quarter of 2011. The allowance for loan losses remains healthy at $71.9 million, or 3.69% of total loans.
Net interest income, after the provision for credit losses, totaled $21.2 million in the second quarter of 2012, compared to $22.5 million in the first quarter of 2012 and $25.5 million in the second quarter of 2011. In the first six months of 2012, net interest income after the provision for credit losses, totaled $43.7 million compared to $51.6 million in the first six months of 2011.
Non-interest income in the second quarter of 2012 was $7.2 million, compared to $3.6 million in the first quarter of 2012 and $6.0 million in the second quarter of 2011. In the first six months of 2012, non-interest income totaled $10.8 million compared to $11.5 million in the first six months of 2011.
“We generated $5.5 million gain on sales of SBA loans, $5.3 million net loss on sales of other loans, and $1.4 million net gain on sales of investment securities in the second quarter of 2012, as opposed to net losses on note sales of $2.4 million in the first quarter of 2012,” said Robinson.
Non-interest expense in the second quarter of 2012 was $19.8 million, compared to $18.7 million in the first quarter of 2012 and $22.9 million in the second quarter of 2011. Salaries and employee benefits increased by $339,000, mainly due to a $202,000 severance payment made in connection with a workforce reduction and a $200,000 additional bonus provision, partially offset by an increase in loan origination cost capitalization. Professional fees increased by $340,000, mainly due to the legal expense increase from an elevated level of problem note sales during the quarter. Advertising and promotion expenses increased by $408,000, mainly due to the 30th anniversary celebration campaign and the business development efforts for loan production. Other operating expenses decreased by $229,000, mainly due to the $202,000 decrease from the fair value of stock warrant adjustment. For the first six months of 2012, non-interest expense totaled $38.5 million, down from $43.9 million in the first six months of 2011. In the year ago quarter and first half, operating costs were boosted by a $2.2 million expense for unconsummated capital offerings.
Hanmi recorded an income tax benefit of $47.2 million for the second quarter of 2012, largely due to the income tax benefit that resulted from the reversal of the $53.1 million valuation allowance on its DTA. The valuation allowance was established in 2009 resulting from the then-current future earnings prospects and the Bank’s potential inability to realize its DTA in the future. With seven consecutive quarters of profitability, significantly improved asset quality, strengthening capital and improving economic conditions, management has concluded that those assets are more likely than not to be recovered and thus maintaining a valuation allowance for DTA was no longer necessary. In addition to the reversal of the valuation allowance, the Bank recorded a provision for income taxes for the second quarter of 2012 in the amount of $5.9 million. The Bank expects to release an additional DTA valuation allowance reserve of $10.1 million in the third and fourth quarter of 2012. The total DTA benefit recognized will approximate $63.2 million for the year.
Balance Sheet
Total assets were $2.85 billion at June 30, 2012, an increase of 2.7% from $2.77 billion at March 31, 2012, and 5.0% from $2.71 billion at June 30, 2011.
Gross loans, excluding loans held for sale, totaled $1.95 billion at June 30, 2012, down from $1.98 billion at March 31, 2012, and $2.07 billion at June 30, 2011. Loans held for sale declined substantially to $5.1 million from $56.0 million at March 31, 2012 and $44.1 million at June 30, 2011. Average gross loans, net of deferred loan fees, were $2.00 billion for the second quarter of 2012, compared to $1.99 billion in the first quarter of 2012 and $2.14 billion for the second quarter of 2011.
Liquidity remained high with the total average investment portfolio at $417.2 million during the second quarter of 2012, down from $426.4 million during the first quarter of 2012 and from $497.1 million during the second quarter of 2011. Cash and cash equivalents increased to $304.4 million at June 30, 2012, up from $160.2 million at March 31, 2012 and $198.9 million at June 30, 2011.
Average deposits for the second quarter of 2012 were down slightly at $2.31 billion compared to $2.43 billion for the second quarter of 2011. The overall mix of funding continued to improve with time deposits, particularly high-cost promotional accounts, declining and transaction account balances increasing. Core deposits, which are total deposits less time deposits equal to or greater than $100,000, accounted for 71.3% of total deposits, at June 30, 2012, up from 59.8% at June 30, 2011. Demand deposit accounts increased 17.8% to $679.1 million at June 30, 2012 compared to $600.8 million at June 30, 2011. Demand deposit accounts accounted for 28.5% of total deposits at June 30, 2012, up from 25.2% at June 30, 2011. Time deposits equal to or greater than $100,000 were down $194.8 million in the past twelve months, and there were no brokered deposits at June 30, 2012. Total deposits were $2.39 billion at June 30, 2012 compared to $2.40 billion at June 30, 2011.
At June 30, 2012, total stockholders’ equity was $348.5 million, or $11.07 per share. Hanmi had 31.5 million shares outstanding at June 30, 2012, compared to 18.9 million shares outstanding at June 30, 2011, adjusting for stock splits. Tangible common stockholders’ equity was $347.0 million at June 30, 2012, or 12.20% of tangible assets, compared to $196.5 million, or 7.26% of tangible assets at June 30, 2011. Tangible book value per share was $11.02 at June 30, 2012, compared to $9.28 at March 31, 2012, an increase of 18.8%, reflecting the reversal of the DTA valuation allowance in the second quarter of 2012.
Asset Quality
Non-performing loans (“NPL”), excluding loans held for sale, declined to $45.1 million at June 30, 2012, down 10.1% from $50.2 million at March 31, 2012, and down 68.8% from $144.5 million at June 30, 2011. NPLs that were restructured (“TDRs”) and are current on payments, totaled $15.1 million, or 33.4% of NPLs, at June 30, 2012, compared to $14.5 million, or 28.8% of the NPLs, at March 31, 2012, and $52.7 million, or 36.5% of the NPLs at June 30, 2011. In addition, $3.5 million of NPLs were recorded at the lower of cost or fair value as they were classified as held for sale, at June 30, 2012. Out of the NPLs, $9.4 million are guaranteed by the SBA and the State of California. The following table shows NPLs, excluding loans held for sale, by loan category:
| 6/30/2012 |
% of Total |
3/31/2012 |
% of Total |
6/30/2011 |
% of Total |
|||||||||||||
| (In Thousands) | ||||||||||||||||||
| Real Estate Loans: | ||||||||||||||||||
| Commercial Property | ||||||||||||||||||
| Retail | $ | 1,203 | 2.7 | % | $ | 1,327 | 2.6 | % | $ | 14,335 | 9.9 | % | ||||||
| Land | 2,112 | 4.7 | % | 2,187 | 4.4 | % | 25,184 | 17.5 | % | |||||||||
| Other | 936 | 2.1 | % | 1,454 | 2.9 | % | 3,772 | 2.6 | % | |||||||||
| Construction | 7,930 | 17.5 | % | 8,157 | 16.2 | % | 12,298 | 8.5 | % | |||||||||
| Residential Property | 1,298 | 2.9 | % | 1,524 | 3.0 | % | 1,460 | 1.0 | % | |||||||||
| Commercial & Industrial Loans: | ||||||||||||||||||
| Commercial Term Loans | ||||||||||||||||||
| Unsecured | 6,953 | 15.4 | % | 6,942 | 13.8 | % | 10,758 | 7.4 | % | |||||||||
| Secured by Real Estate | 5,826 | 12.9 | % | 9,837 | 19.6 | % | 46,454 | 32.1 | % | |||||||||
| Commercial Line of Credit | 1,585 | 3.5 | % | 1,610 | 3.2 | % | 2,905 | 2.0 | % | |||||||||
| SBA | 15,720 | 34.8 | % | 16,648 | 33.2 | % | 23,263 | 16.2 | % | |||||||||
| International |
- |
0.0 | % |
- |
0.0 | % | 3,243 | 2.2 | % | |||||||||
| Consumer Loans | 1,580 | 3.5 | % | 528 | 1.1 | % | 824 | 0.6 | % | |||||||||
| Total Non-Performing Loans | $ | 45,143 | 100.0 | % | $ | 50,214 | 100.0 | % | $ | 144,496 | 100.0 | % | ||||||
“In the second quarter we sold $44.3 million in notes, bringing the total note sales up to $73.0 million for the year,” said J.H. Son, Executive Vice President and Chief Credit Officer. “Our strategy of selling loans before they move into foreclosure continues to serve us well and has allowed us to more efficiently reduce non-performing assets over the past few years. Of the $44.3 million of problem loans sold in the quarter, $16.5 million were non-accrual loans. Reflecting the continued improvement in asset quality, classified loans were $142.7 million, or 7.32% of total gross loans, at June 30, 2012, down from $387.4 million, or 18.73% of total gross loans, at June 30, 2011. We are very pleased with our team’s efforts and accomplishments in this area.”
Delinquent loans that are less than 90 days past due and still accruing interest decreased to $4.7 million at June 30, 2012, or 0.24% of gross loans, from $10.5 million, or 0.53% of gross loans, at March 31, 2012. At June 30, 2012, the allowance for loan losses was $71.9 million, or 3.69% of gross loans. At June 30, 2012, Hanmi’s allowance for loan losses was 159.3% of non-performing loans, compared to 161.4% at March 31, 2012. For the second quarter of 2012, net charge-offs were $13.4 million, compared to $11.3 million in the first quarter of 2012 and $16.5 million in the second quarter of 2011.
Conference Call Information
Management will host a conference call today at 1:30 p.m. Pacific Time (4:30 p.m. ET) to discuss these results. This call will also be broadcast live via the internet. Investment professionals and all current and prospective stockholders are invited to access the live call on July 19 by dialing (480) 629-9645 at 1:30 p.m. Pacific Time, using access code HANMI. To listen to the call online, either live or archived, visit the Investor Relations page of Hanmi’s website at www.hanmi.com. Shortly after the call concludes, the replay will also be available at (303) 590-3030, using access code 4550848.
On July 25, 2012, Hanmi will host its Annual Shareholders Meeting at 10:30 a.m. at the Sheraton Universal Hotel in Universal City. Shareholders, customers and employees are welcome to attend.
About Hanmi Financial Corporation
Headquartered in Los Angeles, Hanmi Bank, a wholly-owned subsidiary of Hanmi Financial Corporation, provides services to the multi-ethnic communities of California, with 27 full-service offices in Los Angeles, Orange, San Bernardino, San Francisco, Santa Clara and San Diego counties, and a loan production office in Washington State. Hanmi Bank specializes in commercial, SBA and trade finance lending, and is a recognized community leader. Hanmi Bank’s mission is to provide a full range of quality products and premier services to its customers and to maximize stockholder value. Additional information is available at www.hanmi.com.
Forward-Looking Statements
This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. All statements other than statements of historical fact are “forward –looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital plans and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statement. These factors include the following: failure to maintain adequate levels of capital and liquidity to support our operations; the effect of regulatory orders we have entered into and potential future supervisory action against us or Hanmi Bank; general economic and business conditions internationally, nationally and in those areas in which we operate; volatility and deterioration in the credit and equity markets; changes in consumer spending, borrowing and savings habits; availability of capital from private and government sources; demographic changes; competition for loans and deposits and failure to attract or retain loans and deposits; fluctuations in interest rates and a decline in the level of our interest rate spread; risks of natural disasters related to our real estate portfolio; risks associated with Small Business Administration loans; failure to attract or retain key employees; changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums; ability to receive regulatory approval for Hanmi Bank to declare dividends to Hanmi Financial; ability to recapture DTA; adequacy of our allowance for loan losses; credit quality and the effect of credit quality on our provision for credit losses and allowance for loan losses; changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements; our ability to control expenses; and changes in securities markets. In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission (“SEC”), including, in Item 1A of our Form 10K for the year ended December 31, 2011, our quarterly reports on Form 10Q, and in current and periodic reports that we will file with the SEC hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.
| HANMI FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||
| CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||||||||||||
| (In Thousands, Except Share Data) | ||||||||||||||||||
| June 30, | March 31, | Percentage | June 30, | Percentage | ||||||||||||||
| 2012 | 2012 | Change | 2011 | Change | ||||||||||||||
| ASSETS | ||||||||||||||||||
| Cash and Due From Banks | $ | 73,645 | $ | 68,093 | 8.15 | % | $ | 67,166 | 9.65 | % | ||||||||
| Interest-Bearing Deposits in Other Banks | 197,760 | 92,149 | 114.61 | % | 131,757 | 50.09 | % | |||||||||||
| Federal Funds Sold | 33,000 |
- |
NM |
- |
NM | |||||||||||||
| Cash and Cash Equivalents | 304,405 | 160,242 | 89.97 | % | 198,923 | 53.03 | % | |||||||||||
| Restricted Cash | 3,819 | 1,818 | NM |
- |
NM | |||||||||||||
| Term Federal Funds Sold | 110,000 | 120,000 | -8.33 | % |
- |
NM | ||||||||||||
| Securities Available for Sale, at Fair Value | 319,154 | 355,837 | -10.31 | % | 390,212 | -18.21 | % | |||||||||||
| Securities Held to Maturity, at Amortized Cost | 53,130 | 59,472 | -10.66 | % | 833 | NM | ||||||||||||
| Loans Held for Sale, at the Lower of Cost or Fair Value | 5,138 | 55,993 | -90.82 | % | 44,105 | -88.35 | % | |||||||||||
| Loans Receivable, Net of Allowance for Loan Losses | 1,878,367 | 1,896,827 | -0.97 | % | 1,959,564 | -4.14 | % | |||||||||||
| Accrued Interest Receivable | 7,168 | 7,969 | -10.05 | % | 7,512 | -4.58 | % | |||||||||||
| Premises and Equipment, Net | 15,912 | 16,272 | -2.21 | % | 16,869 | -5.67 | % | |||||||||||
| Other Real Estate Owned, Net | 1,071 | 1,260 | -15.00 | % | 1,340 | -20.07 | % | |||||||||||
| Customers' Liability on Acceptances | 1,443 | 1,539 | -6.24 | % | 1,629 | -11.42 | % | |||||||||||
| Servicing Assets | 5,003 | 3,515 | 42.33 | % | 2,545 | 96.58 | % | |||||||||||
| Other Intangible Assets, Net | 1,417 | 1,462 | -3.08 | % | 1,825 | -22.36 | % | |||||||||||
| Investment in Federal Home Loan Bank Stock, at Cost | 20,687 | 21,761 | -4.94 | % | 25,076 | -17.50 | % | |||||||||||
| Investment in Federal Reserve Bank Stock, at Cost | 10,261 | 8,558 | 19.90 | % | 7,489 | 37.01 | % | |||||||||||
| Income Tax Asset |
61,435 |
11,501 |
434.17 |
% | 9,188 |
568.64 |
% | |||||||||||
| Bank-Owned Life Insurance | 28,581 | 28,344 | 0.84 | % | 27,813 | 2.76 | % | |||||||||||
| Other Assets | 19,661 | 19,101 | 2.93 | % | 15,912 | 23.56 | % | |||||||||||
| TOTAL ASSETS | $ |
2,846,652 |
$ | 2,771,471 |
2.71 |
% | $ | 2,710,835 |
5.01 |
% | ||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||
| Deposits: | ||||||||||||||||||
|
Noninterest-Bearing |
$ | 679,085 | $ | 704,061 | -3.55 | % | $ | 600,812 | 13.03 | % | ||||||||
|
Interest-Bearing |
1,706,022 | 1,659,665 | 2.79 | % | 1,797,563 | -5.09 | % | |||||||||||
| 2,385,107 | 2,363,726 | 0.90 | % | 2,398,375 | -0.55 | % | ||||||||||||
| Accrued Interest Payable | 14,882 | 15,602 | -4.61 | % | 14,226 | 4.61 | % | |||||||||||
| Bank's Liability on Acceptances | 1,443 | 1,539 | -6.24 | % | 1,629 | -11.42 | % | |||||||||||
| Federal Home Loan Bank Advances | 3,122 | 3,213 | -2.83 | % | 3,479 | -10.26 | % | |||||||||||
| Other Borrowings |
- |
- |
NM | 1,034 | NM | |||||||||||||
| Junior Subordinated Debentures | 82,406 | 82,406 | 0.00 | % | 82,406 | 0.00 | % | |||||||||||
| Accrued Expenses and Other Liabilities | 11,236 | 11,267 | -0.28 | % | 11,321 | -0.75 | % | |||||||||||
| TOTAL LIABILITIES | 2,498,196 | 2,477,753 | 0.83 | % | 2,512,470 | -0.57 | % | |||||||||||
| STOCKHOLDERS' EQUITY: | ||||||||||||||||||
| Common Stock, $0.008 Par Value | 257 | 257 | 0.00 | % | 156 | 64.74 | % | |||||||||||
| Additional Paid-In Capital | 549,797 | 549,811 | 0.00 | % | 472,717 | 16.31 | % | |||||||||||
| Unearned Compensation | (116 | ) | (141 | ) | -17.73 | % | (219 | ) | -47.03 | % | ||||||||
| Accumulated Other Comprehensive Income |
3,154 |
4,201 |
-24.92 |
% | 3,325 |
-5.14 |
% | |||||||||||
| Accumulated Deficit | (134,778 | ) | (190,552 | ) | -29.27 | % | (207,602 | ) | -35.08 | % | ||||||||
| Less Treasury Stock | (69,858 | ) | (69,858 | ) | 0.00 | % | (70,012 | ) | -0.22 | % | ||||||||
| TOTAL STOCKHOLDERS' EQUITY |
348,456 |
293,718 |
18.64 |
% | 198,365 |
75.66 |
% | |||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ |
2,846,652 |
$ | 2,771,471 |
2.71 |
% | $ | 2,710,835 |
5.01 |
% | ||||||||
| HANMI FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||||
| (In Thousands, Except Per Share Data) | ||||||||||||||||||
| Three Months Ended | ||||||||||||||||||
| June 30, | March 31, | Percentage | June 30, | Percentage | ||||||||||||||
| 2012 | 2012 | Change | 2011 | Change | ||||||||||||||
| INTEREST AND DIVIDEND INCOME: | ||||||||||||||||||
| Interest and Fees on Loans | $ | 27,241 | $ | 27,542 | -1.09 | % | $ | 29,249 | -6.87 | % | ||||||||
| Taxable Interest on Investment Securities | 2,190 | 2,098 | 4.39 | % | 3,094 | -29.22 | % | |||||||||||
| Tax-Exempt Interest on Investment Securities | 99 | 102 | -2.94 | % | 37 |
167.57 |
% |
|||||||||||
| Interest on Term Federal Funds Sold | 168 | 325 | NM | 18 |
833.33 |
% |
||||||||||||
| Dividends on Federal Reserve Bank Stock | 148 | 128 | 15.63 | % | 112 |
32.14 |
% |
|||||||||||
| Interest on Federal Funds Sold and Securities Purchased Under Resale Agreements | 31 | 2 | NM | 9 |
244.44 |
% |
||||||||||||
| Interest on Interest-Bearing Deposits in Other Banks | 59 | 68 | -13.24 | % | 79 |
-25.32 |
% |
|||||||||||
| Dividends on Federal Home Loan Bank Stock | 29 | 29 | 0.00 | % | 20 |
45.00 |
% |
|||||||||||
| Total Interest and Dividend Income | 29,965 | 30,294 | -1.09 | % | 32,618 | -8.13 | % | |||||||||||
| INTEREST EXPENSE: | ||||||||||||||||||
| Interest on Deposits | 3,953 | 4,919 | -19.64 | % | 6,192 | -36.16 | % | |||||||||||
| Interest on Federal Home Loan Bank Advances | 43 | 43 | 0.00 | % | 239 |
-82.01 |
% |
|||||||||||
| Interest on Junior Subordinated Debentures | 797 | 799 | -0.25 | % | 711 | 12.10 | % | |||||||||||
| Interest on Other Borrowings |
- |
- |
NM | 1 | NM | |||||||||||||
| Total Interest Expense | 4,793 | 5,761 | -16.80 | % | 7,143 | -32.90 | % | |||||||||||
| NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES | 25,172 | 24,533 | 2.60 | % | 25,475 | -1.19 | % | |||||||||||
| Provision for Credit Losses | 4,000 | 2,000 | NM |
- |
NM | |||||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 21,172 | 22,533 | -6.04 | % | 25,475 | -16.89 | % | |||||||||||
| NON-INTEREST INCOME: | ||||||||||||||||||
| Service Charges on Deposit Accounts | 2,936 | 3,168 | -7.32 | % | 3,278 | -10.43 | % | |||||||||||
| Insurance Commissions | 1,294 | 1,236 | 4.69 | % | 1,203 | 7.56 | % | |||||||||||
| Trade Finance and Other Service Charges and Fees | 1,159 | 1,110 | 4.41 | % | 1,195 | -3.01 | % | |||||||||||
| Bank-Owned Life Insurance Income | 238 | 399 | -40.35 | % | 233 | 2.15 | % | |||||||||||
| Net Gain on Sales of SBA Loans | 5,473 |
- |
NM |
- |
NM | |||||||||||||
| Net Loss on Sales of Other Loans | (5,326 | ) | (2,393 | ) |
122.57 |
% |
(77 | ) | NM | |||||||||
| Net Gain (Loss) on Sales of Investment Securities | 1,381 | 1 | NM | (70 | ) | NM | ||||||||||||
| Impairment Loss on Investment Securities: | (116 | ) |
- |
NM |
- |
NM | ||||||||||||
| Other Operating Income | 150 | 112 | 33.93 | % | 255 | -41.18 | % | |||||||||||
| Total Non-Interest Income | 7,189 | 3,633 | 97.88 | % | 6,017 | 19.48 | % | |||||||||||
| NON-INTEREST EXPENSE: | ||||||||||||||||||
| Salaries and Employee Benefits | 9,449 | 9,110 | 3.72 | % | 8,762 | 7.84 | % | |||||||||||
| Occupancy and Equipment | 2,621 | 2,595 | 1.00 | % | 2,650 | -1.09 | % | |||||||||||
| Deposit Insurance Premiums and Regulatory Assessments | 1,498 | 1,401 | 6.92 | % | 1,377 | 8.79 | % | |||||||||||
| Data Processing | 1,298 | 1,253 | 3.59 | % | 1,487 | -12.71 | % | |||||||||||
| Other Real Estate Owned Expense | 69 | (44 | ) | NM | 806 | NM | ||||||||||||
| Professional Fees | 1,089 | 749 | 45.39 | % | 1,138 | -4.31 | % | |||||||||||
| Directors and Officers Liability Insurance | 295 | 297 | -0.67 | % | 733 | -59.75 | % | |||||||||||
| Supplies and Communications | 576 | 558 | 3.23 | % | 496 | 16.13 | % | |||||||||||
| Advertising and Promotion | 1,009 | 601 | 67.89 | % | 908 | 11.12 | % | |||||||||||
| Loan-Related Expense | 88 | 200 | -56.00 | % | 184 | -52.17 | % | |||||||||||
| Amortization of Other Intangible Assets | 45 | 71 | -36.62 | % | 190 | -76.32 | % | |||||||||||
| Expense related to Unconsummated Capital Offerings |
- |
- |
NM | 2,220 | NM | |||||||||||||
| Other Operating Expenses | 1,726 | 1,955 | -11.71 | % | 1,935 | -10.80 | % | |||||||||||
| Total Non-Interest Expense | 19,763 | 18,746 | 5.43 | % | 22,886 | -13.65 | % | |||||||||||
| INCOME BEFORE (BENEFIT) PROVISION FOR INCOME TAXES | 8,598 | 7,420 | 15.88 | % | 8,606 | -0.09 | % | |||||||||||
| (Benefit) Provision for Income Taxes | (47,177 | ) | 79 | NM | 605 | NM | ||||||||||||
| NET INCOME | $ | 55,775 | $ | 7,341 | 659.77 | % | $ | 8,001 | 597.10 | % | ||||||||
| EARNINGS PER SHARE: | ||||||||||||||||||
| Basic | $ | 1.77 | $ | 0.23 | $ | 0.42 | ||||||||||||
| Diluted | $ | 1.77 | $ | 0.23 | $ | 0.42 | ||||||||||||
| WEIGHTED-AVERAGE SHARES OUTSTANDING: | ||||||||||||||||||
| Basic | 31,475,610 | 31,470,520 | 18,888,080 | |||||||||||||||
| Diluted | 31,499,803 | 31,489,569 | 18,907,299 | |||||||||||||||
| COMMON SHARES OUTSTANDING | 31,489,201 | 31,489,201 | 18,907,299 | |||||||||||||||
| HANMI FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | ||||||||||||||||||
| (In Thousands, Except Per Share Data) | ||||||||||||||||||
| Three Months Ended | ||||||||||||||||||
| June 30, | March 31, | Percentage | June 30, | Percentage | ||||||||||||||
| 2012 | 2012 | Change | 2011 | Change | ||||||||||||||
| NET INCOME | $ | 55,775 | $ | 7,341 | NM | $ | 8,001 | NM | ||||||||||
| OTHER COMPREHENSIVE INCOME, NET OF TAX | ||||||||||||||||||
| Unrealized gains on securities | ||||||||||||||||||
|
Unrealized holding gains arising during period |
214 |
|
674 | NM | 6,172 | NM | ||||||||||||
| Less: Reclassification adjustment for gains included in net income | (1,265 | ) |
- |
NM | 70 | NM | ||||||||||||
| Unrealized gains on interest rate swap | 7 | 1 | NM | 1 | NM | |||||||||||||
| Unrealized (loss) gains on interest-only strip of servicing assets | (3 | ) | 2 | NM | 1 | NM | ||||||||||||
| Other Comprehensive (Loss) Income |
(1,047 |
) | 677 | NM | 6,244 | NM | ||||||||||||
| Comprehensive Income |
54,728 |
8,018 | NM | 14,245 | NM | |||||||||||||
| Less: Comprehensive income attributable to the noncontrolling interest |
- |
- |
NM |
- |
NM | |||||||||||||
| COMPREHENSIVE INCOME ATTRIBUTABLE TO STOCKHOLDERS | $ |
54,728 |
$ | 8,018 | NM | $ | 14,245 | NM | ||||||||||
| HANMI FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
|||||||||||
| (In Thousands, Except Per Share Data) | |||||||||||
| Six Months Ended | |||||||||||
| June 30, | June 30, | Percentage | |||||||||
| 2012 | 2011 | Change | |||||||||
| INTEREST AND DIVIDEND INCOME: | |||||||||||
| Interest and Fees on Loans | $ | 54,783 | $ | 60,154 | -8.93 | % | |||||
| Taxable Interest on Investment Securities | 4,288 | 5,767 | -25.65 | % | |||||||
| Tax-Exempt Interest on Investment Securities | 201 | 77 |
161.04 |
% |
|||||||
| Interest on Term Federal Funds Sold | 493 | 45 |
995.56 |
% |
|||||||
| Dividends on Federal Reserve Bank Stock | 276 | 224 | 23.21 | % | |||||||
| Interest on Federal Funds Sold and Securities Purchased Under Resale Agreements | 33 | 17 |
94.12 |
% |
|||||||
| Interest on Interest-Bearing Deposits in Other Banks | 127 | 168 | -24.40 | % | |||||||
| Dividends on Federal Home Loan Bank Stock | 58 | 41 | 41.46 | % | |||||||
| Total Interest and Dividend Income | 60,259 | 66,493 | -9.38 | % | |||||||
| INTEREST EXPENSE: | |||||||||||
| Interest on Deposits | 8,872 | 12,927 | -31.37 | % | |||||||
| Interest on Federal Home Loan Bank Advances | 86 | 572 |
-84.97 |
% |
|||||||
| Interest on Junior Subordinated Debentures | 1,596 | 1,409 | 13.27 | % | |||||||
| Interest on Other Borrowings |
- |
1 | NM | ||||||||
| Total Interest Expense | 10,554 | 14,909 | -29.21 | % | |||||||
| NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES | 49,705 | 51,584 | -3.64 | % | |||||||
| Provision for Credit Losses | 6,000 |
- |
NM | ||||||||
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 43,705 | 51,584 | -15.27 | % | |||||||
| NON-INTEREST INCOME: | |||||||||||
| Service Charges on Deposit Accounts | 6,104 | 6,419 | -4.91 | % | |||||||
| Insurance Commissions | 2,530 | 2,463 | 2.72 | % | |||||||
| Trade Finance and Other Service Charges and Fees | 2,269 | 2,287 | -0.79 | % | |||||||
| Bank-Owned Life Insurance Income | 637 | 463 | 37.58 | % | |||||||
| Net Gain on Sales of SBA Loans | 5,473 |
- |
NM | ||||||||
| Net Loss on Sales of Other Loans | (7,719 | ) | (415 | ) | NM | ||||||
| Net Gain (Loss) on Sales of Investment Securities | 1,382 | (70 | ) | NM | |||||||
| Impairment Loss on Investment Securities: | (116 | ) |
- |
NM | |||||||
| Other Operating Income | 262 | 378 | -30.69 | % | |||||||
| Total Non-Interest Income | 10,822 | 11,525 | -6.10 | % | |||||||
| NON-INTEREST EXPENSE: | |||||||||||
| Salaries and Employee Benefits | 18,559 | 17,886 | 3.76 | % | |||||||
| Occupancy and Equipment | 5,216 | 5,215 | 0.02 | % | |||||||
| Deposit Insurance Premiums and Regulatory Assessments | 2,899 | 3,447 | -15.90 | % | |||||||
| Data Processing | 2,551 | 2,886 | -11.61 | % | |||||||
| Other Real Estate Owned Expense | 25 | 1,635 | NM | ||||||||
| Professional Fees | 1,838 | 1,927 | -4.62 | % | |||||||
| Directors and Officers Liability Insurance | 592 | 1,467 | -59.65 | % | |||||||
| Supplies and Communications | 1,134 | 1,074 | 5.59 | % | |||||||
| Advertising and Promotion | 1,610 | 1,474 | 9.23 | % | |||||||
| Loan-Related Expense | 288 | 409 | -29.58 | % | |||||||
| Amortization of Other Intangible Assets | 116 | 408 | -71.57 | % | |||||||
| Expense related to Unconsummated Capital Offerings |
- |
2,220 | NM | ||||||||
| Other Operating Expenses | 3,681 | 3,899 | -5.59 | % | |||||||
| Total Non-Interest Expense | 38,509 | 43,947 | -12.37 | % | |||||||
| INCOME BEFORE (BENEFIT) PROVISION FOR INCOME TAXES | 16,018 | 19,162 | -16.41 | % | |||||||
| (Benefit) Provision for Income Taxes | (47,098 | ) | 724 | NM | |||||||
| NET INCOME | $ | 63,116 | $ | 18,438 | 242.31 | % | |||||
| EARNINGS PER SHARE: | |||||||||||
| Basic | $ | 2.01 | $ | 0.98 | |||||||
| Diluted | $ | 2.00 | $ | 0.98 | |||||||
| WEIGHTED-AVERAGE SHARES OUTSTANDING: | |||||||||||
| Basic | 31,473,065 | 18,885,368 | |||||||||
| Diluted | 31,489,943 | 18,907,169 | |||||||||
| COMMON SHARES OUTSTANDING | 31,489,201 | 18,907,299 | |||||||||
| HANMI FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | |||||||||||
| (In Thousands, Except Per Share Data) | |||||||||||
| Six Months Ended | |||||||||||
| June 30, | June 30, | Percentage | |||||||||
| 2012 | 2011 | Change | |||||||||
| NET INCOME | $ | 63,116 | $ | 18,438 | NM | ||||||
| OTHER COMPREHENSIVE INCOME, NET OF TAX | |||||||||||
| Unrealized gains on securities | |||||||||||
|
Unrealized holding gains arising during period |
888 |
|
6,216 | NM | |||||||
| Less: Reclassification adjustment for gains included in net income | (1,265 | ) | 70 | NM | |||||||
| Unrealized gains on interest rate swap | 8 | 2 | NM | ||||||||
| Unrealized (loss) gains on interest-only strip of servicing assets | (1 | ) | 1 | NM | |||||||
| Other Comprehensive (Loss) Income |
(370 |
) | 6,289 | NM | |||||||
| Comprehensive Income |
62,746 |
24,727 | NM | ||||||||
| Less: Comprehensive income attributable to the noncontrolling interest |
- |
- |
NM | ||||||||
| COMPREHENSIVE INCOME ATTRIBUTABLE TO STOCKHOLDERS | $ |
62,746 |
$ | 24,727 | NM | ||||||
| HANMI FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||
|
SELECTED FINANCIAL DATA (Unaudited) |
||||||||||||
| Three Months Ended | ||||||||||||
| June 30, | March 31, | June 30, | ||||||||||
| 2012 | 2012 | 2011 | ||||||||||
| AVERAGE BALANCES: | (In Thousands) | |||||||||||
| Average Gross Loans, Net of Deferred Loan Fees (1)(2) | $ | 2,003,475 | $ | 1,985,071 | $ | 2,136,976 | ||||||
| Average Investment Securities | $ | 417,202 | $ | 426,384 | $ | 497,052 | ||||||
| Average Interest-Earning Assets | $ | 2,642,428 | $ | 2,676,643 | $ | 2,804,709 | ||||||
| Average Total Assets | $ |
2,723,432 |
$ | 2,742,006 | $ | 2,836,967 | ||||||
| Average Deposits | $ | 2,308,193 | $ | 2,337,302 | $ | 2,427,934 | ||||||
| Average Borrowings | $ | 86,509 | $ | 85,665 | $ | 190,447 | ||||||
| Average Interest-Bearing Liabilities | $ | 1,720,781 | $ | 1,777,208 | $ | 2,025,392 | ||||||
| Average Stockholders’ Equity | $ |
300,599 |
$ | 289,132 | $ | 189,528 | ||||||
| Average Tangible Equity | $ |
299,154 |
$ | 287,631 | $ | 187,595 | ||||||
| PERFORMANCE RATIOS (Annualized): | ||||||||||||
| Return on Average Assets | 8.24 | % | 1.08 | % | 1.13 | % | ||||||
| Return on Average Stockholders’ Equity |
74.63 |
% | 10.21 | % | 16.93 | % | ||||||
| Return on Average Tangible Equity |
74.99 |
% | 10.27 | % | 17.11 | % | ||||||
| Efficiency Ratio | 61.07 | % | 66.56 | % | 72.67 | % | ||||||
| Net Interest Spread (3) | 3.45 | % | 3.26 | % | 3.26 | % | ||||||
| Net Interest Margin (3) | 3.84 | % | 3.69 | % | 3.65 | % | ||||||
| Non Interest Expense to Average Total Assets | 2.90 | % | 2.73 | % | 3.23 | % | ||||||
| ALLOWANCE FOR LOAN LOSSES: | ||||||||||||
| Balance at Beginning of Period | $ | 81,052 | $ | 89,936 | $ | 125,780 | ||||||
| Provision Charged to Operating Expense | 4,233 | 2,400 | (250 | ) | ||||||||
| Charge-Offs, Net of Recoveries | (13,392 | ) | (11,284 | ) | (16,501 | ) | ||||||
| Balance at End of Period | $ | 71,893 | $ | 81,052 | $ | 109,029 | ||||||
| ASSET QUALITY RATIOS: | ||||||||||||
| Net Loan Charge-Offs to Average Gross Loans (4) | 2.67 | % | 2.27 | % | 3.10 | % | ||||||
| Allowance for Loan Losses to Total Gross Loans | 3.69 | % | 4.10 | % | 5.27 | % | ||||||
| Allowance for Loan Losses to Total Non-Performing Loans | 159.26 | % | 161.41 | % | 75.45 | % | ||||||
| Non-Performing Assets to Total Assets | 1.62 | % | 1.86 | % | 5.38 | % | ||||||
| Non-Performing Loans to Gross Loans | 2.31 | % | 2.54 | % | 6.99 | % | ||||||
| Total Non-Performing Assets to Allowance for Loan Losses | 64.28 | % | 63.51 | % | 133.76 | % | ||||||
| ALLOWANCE FOR OFF-BALANCE SHEET ITEMS: | ||||||||||||
| Balance at Beginning of Period | $ | 2,581 | $ | 2,981 | $ | 2,141 | ||||||
| Provision Charged to Operating Expense | (233 | ) | (400 | ) | 250 | |||||||
| Balance at End of Period | $ | 2,348 | $ | 2,581 | $ | 2,391 | ||||||
|
(1) Loans Held for Sale are included in average gross loans. |
||||||||||||
|
(2) Commercial and industrial loans include owner-occupied commercial real estate loans. |
||||||||||||
| (3) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate. | ||||||||||||
| (4) Ratios calculated on an annualized basis. | ||||||||||||
| HANMI FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||
|
SELECTED FINANCIAL DATA (Unaudited) (Continued) |
||||||||||||
| June 30, | March 31, | June 30, | ||||||||||
| 2012 | 2012 | 2011 | ||||||||||
| NON-PERFORMING ASSETS: | (In Thousands) | |||||||||||
| Non-Accrual Loans | $ | 45,143 | $ | 50,214 | $ | 144,496 | ||||||
| Loans 90 Days or More Past Due and Still Accruing |
- |
- |
- |
|||||||||
| Total Non-Performing Loans | 45,143 | 50,214 | 144,496 | |||||||||
| Other Real Estate Owned, Net | 1,071 | 1,260 | 1,340 | |||||||||
| Total Non-Performing Assets | $ | 46,214 | $ | 51,474 | $ | 145,836 | ||||||
| Non-Performing Loans in Loans Held for Sale | $ | 3,489 | $ | 15,472 | $ | 22,606 | ||||||
| Non-Performing Assets (including Loans Held for Sale) | $ | 49,703 | $ | 66,946 | $ | 168,442 | ||||||
| DELINQUENT LOANS, 30 to 89 days past due and still accruing | $ | 4,707 | $ | 10,497 | $ | 15,644 | ||||||
| Delinquent Loans/Total Gross Loans | 0.24 | % | 0.53 | % | 0.76 | % | ||||||
| LOAN PORTFOLIO: | ||||||||||||
| Real Estate Loans | $ | 732,059 | $ | 717,491 | $ | 729,526 | ||||||
| Residential Loans | 107,757 | 116,566 | 58,059 | |||||||||
| Commercial and Industrial Loans | 1,070,469 | 1,102,769 | 1,234,519 | |||||||||
| Consumer Loans | 39,339 | 40,152 | 46,500 | |||||||||
| Total Gross Loans | 1,949,624 | 1,976,978 | 2,068,604 | |||||||||
| Deferred Loan Fees | 636 | 901 | (11 | ) | ||||||||
| Gross Loans, Net of Deferred Loan Fees | 1,950,260 | 1,977,879 | 2,068,593 | |||||||||
| Allowance for Loan Losses | (71,893 | ) | (81,052 | ) | (109,029 | ) | ||||||
| Loans Receivable, Net | 1,878,367 | 1,896,827 | 1,959,564 | |||||||||
| Loans Held for Sale, at Lower of Cost or Fair value | 5,138 | 55,993 | 44,105 | |||||||||
| Total Loans Receivable, Net | $ | 1,883,505 | $ | 1,952,820 | $ | 2,003,669 | ||||||
| LOAN MIX: | ||||||||||||
| Real Estate Loans | 37.5 | % | 36.3 | % | 35.3 | % | ||||||
| Residential Loans | 5.5 | % | 5.9 | % | 2.8 | % | ||||||
| Commercial and Industrial Loans | 54.9 | % | 55.8 | % | 59.7 | % | ||||||
| Consumer Loans | 2.1 | % | 2.0 | % | 2.2 | % | ||||||
| Total Gross Loans | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
| DEPOSIT PORTFOLIO: | ||||||||||||
| Demand - Noninterest-Bearing | $ | 679,085 | $ | 704,061 | $ | 600,812 | ||||||
| Savings | 113,707 | 108,698 | 110,935 | |||||||||
| Money Market Checking and NOW Accounts | 557,711 | 516,628 | 484,132 | |||||||||
| Time Deposits of $100,000 or More | 684,053 | 687,573 | 878,871 | |||||||||
| Other Time Deposits | 350,551 | 346,766 | 323,625 | |||||||||
| Total Deposits | $ | 2,385,107 | $ | 2,363,726 | $ | 2,398,375 | ||||||
| DEPOSIT MIX: | ||||||||||||
| Demand - Noninterest-Bearing | 28.5 | % | 29.8 | % | 25.1 | % | ||||||
| Savings | 4.8 | % | 4.6 | % | 4.6 | % | ||||||
| Money Market Checking and NOW Accounts | 23.4 | % | 21.9 | % | 20.2 | % | ||||||
| Time Deposits of $100,000 or More | 28.7 | % | 29.1 | % | 36.6 | % | ||||||
| Other Time Deposits | 14.6 | % | 14.6 | % | 13.5 | % | ||||||
| Total Deposits | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
| CAPITAL RATIOS: | ||||||||||||
| Hanmi Financial | ||||||||||||
| Total Risk-Based |
20.01 |
% | 18.74 | % | 13.92 | % | ||||||
| Tier 1 Risk-Based |
18.74 |
% | 17.46 | % | 11.92 | % | ||||||
| Tier 1 Leverage |
14.69 |
% | 13.44 | % | 9.09 | % | ||||||
| Tangible equity ratio |
12.20 |
% | 10.55 | % | 7.26 | % | ||||||
| Hanmi Bank | ||||||||||||
| Total Risk-Based |
19.06 |
% | 17.74 | % | 14.02 | % | ||||||
| Tier 1 Risk-Based |
17.79 |
% | 16.45 | % | 12.72 | % | ||||||
| Tier 1 Leverage |
13.95 |
% | 12.67 | % | 9.70 | % | ||||||
| Tangible equity ratio |
14.34 |
% | 12.71 | % | 10.33 | % | ||||||
| Three Months Ended | ||||||||||||||||||||||||
| HANMI FINANCIAL CORPORATION | June 30, 2012 | March 31, 2012 | June 30, 2011 | |||||||||||||||||||||
|
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID (Unaudited) |
Interest | Average | Interest | Average | Interest | Average | ||||||||||||||||||
| Average | Income/ | Rate/ | Average | Income/ | Rate/ | Average | Income/ | Rate/ | ||||||||||||||||
| Balance | Expense | Yield | Balance | Expense | Yield | Balance | Expense | Yield | ||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||
|
ASSETS |
||||||||||||||||||||||||
| Interest-Earning Assets: | ||||||||||||||||||||||||
| Gross Loans, Net of Deferred Loan Fees | 2,003,475 | 27,241 | 5.47 | % | 1,985,071 | 27,542 | 5.58 | % | 2,136,976 | 29,248 | 5.49 | % | ||||||||||||
| Municipal Securities | 44,867 | 442 | 3.94 | % | 44,888 | 446 | 3.97 | % | 13,603 | 140 | 4.12 | % | ||||||||||||
| Municipal Securities - Tax Exempt | 13,011 | 152 | 4.68 | % | 13,283 | 157 | 4.73 | % | 4,125 | 57 | 5.53 | % | ||||||||||||
| Obligations of Other U.S. Government Agencies | 77,390 | 380 | 1.96 | % | 73,446 | 325 | 1.77 | % | 152,438 | 629 | 1.65 | % | ||||||||||||
| Other Debt Securities | 281,934 | 1,368 | 1.94 | % | 294,767 | 1,327 | 1.80 | % | 326,886 | 2,326 | 2.85 | % | ||||||||||||
| Equity Securities | 31,107 | 176 | 2.26 | % | 31,255 | 157 | 2.01 | % | 34,078 | 133 | 1.56 | % | ||||||||||||
| Federal Funds Sold and Securities Purchased under Agreements to Resell | 29,844 | 31 | 0.42 | % | 1,852 | 2 | 0.43 | % | 7,067 | 9 | 0.51 | % | ||||||||||||
| Term Federal Funds Sold | 70,384 | 168 | 0.95 | % | 126,484 | 325 | 1.03 | % | 13,681 | 18 | 0.53 | % | ||||||||||||
| Interest-Bearing Deposits in Other Banks | 90,416 | 59 | 0.26 | % | 105,597 | 68 | 0.26 | % | 115,855 | 79 | 0.27 | % | ||||||||||||
| Total Interest-Earning Assets | 2,642,428 | 30,017 | 4.57 | % | 2,676,643 | 30,349 | 4.56 | % | 2,804,709 | 32,639 | 4.67 | % | ||||||||||||
| Noninterest-Earning Assets: | ||||||||||||||||||||||||
| Cash and Cash Equivalents | 71,162 | 69,152 | 68,371 | |||||||||||||||||||||
| Allowance for Loan Losses | (79,089 | ) | (88,024 | ) | (125,152 | ) | ||||||||||||||||||
| Other Assets |
88,931 |
84,235 | 89,039 | |||||||||||||||||||||
| Total Noninterest-Earning Assets |
81,004 |
65,363 | 32,258 | |||||||||||||||||||||
| TOTAL ASSETS |
2,723,432 |
2,742,006 | 2,836,967 | |||||||||||||||||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||||||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||
| Savings | 111,685 | 586 | 2.11 | % | 105,676 | 583 | 2.22 | % | 111,723 | 734 | 2.64 | % | ||||||||||||
| Money Market Checking and NOW Accounts | 514,662 | 769 | 0.60 | % | 465,664 | 676 | 0.58 | % | 488,723 | 1,010 | 0.83 | % | ||||||||||||
| Time Deposits of $100,000 or More | 659,176 | 1,763 | 1.08 | % | 782,562 | 2,748 | 1.41 | % | 926,024 | 3,477 | 1.51 | % | ||||||||||||
| Other Time Deposits | 348,749 | 835 | 0.96 | % | 337,641 | 912 | 1.09 | % | 308,475 | 971 | 1.26 | % | ||||||||||||
| FHLB Advances | 4,103 | 43 | 4.22 | % | 3,259 | 43 | 5.31 | % | 106,710 | 239 | 0.90 | % | ||||||||||||
| Other Borrowings |
- |
- |
0.00 | % |
- |
- |
0.00 | % | 1,331 | 1 | 0.30 | % | ||||||||||||
| Junior Subordinated Debentures | 82,406 | 797 | 3.89 | % | 82,406 | 799 | 3.90 | % | 82,406 | 711 | 3.46 | % | ||||||||||||
| Total Interest-Bearing Liabilities | 1,720,781 | 4,793 | 1.12 | % | 1,777,208 | 5,761 | 1.30 | % | 2,025,392 | 7,143 | 1.41 | % | ||||||||||||
| Noninterest-Bearing Liabilities: | ||||||||||||||||||||||||
| Demand Deposits | 673,921 | 645,759 | 592,989 | |||||||||||||||||||||
| Other Liabilities |
28,131 |
29,907 | 29,058 | |||||||||||||||||||||
| Total Noninterest-Bearing Liabilities |
702,052 |
675,666 | 622,047 | |||||||||||||||||||||
| Total Liabilities |
2,422,833 |
2,452,874 | 2,647,439 | |||||||||||||||||||||
| Stockholders' Equity |
300,599 |
289,132 | 189,528 | |||||||||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
2,723,432 |
2,742,006 | 2,836,967 | |||||||||||||||||||||
| NET INTEREST INCOME | 25,224 | 24,588 | 25,496 | |||||||||||||||||||||
| COST OF DEPOSITS | 0.69 | % | 0.85 | % | 1.02 | % | ||||||||||||||||||
| NET INTEREST SPREAD | 3.45 | % | 3.26 | % | 3.26 | % | ||||||||||||||||||
| NET INTEREST MARGIN | 3.84 | % | 3.69 | % | 3.65 | % | ||||||||||||||||||
| Six Months Ended | ||||||||||||||||
| HANMI FINANCIAL CORPORATION | June 30, 2012 | June 30, 2011 | ||||||||||||||
|
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID (Unaudited) |
Interest | Average | Interest | Average | ||||||||||||
| Average | Income/ | Rate/ | Average | Income/ | Rate/ | |||||||||||
| Balance | Expense | Yield | Balance | Expense | Yield | |||||||||||
| (In Thousands) | ||||||||||||||||
|
ASSETS |
||||||||||||||||
| Interest-Earning Assets: | ||||||||||||||||
| Gross Loans, Net of Deferred Loan Fees | 1,994,273 | 54,783 | 5.52 | % | 2,185,274 | 60,153 | 5.55 | % | ||||||||
| Municipal Securities | 44,427 | 888 | 4.00 | % | 15,556 | 318 | 4.09 | % | ||||||||
| Municipal Securities - Tax Exempt | 13,147 | 310 | 4.72 | % | 4,294 | 119 | 5.54 | % | ||||||||
| Obligations of Other U.S. Government Agencies | 75,418 | 705 | 1.87 | % | 149,392 | 1,252 | 1.68 | % | ||||||||
| Other Debt Securities | 287,743 | 2,696 | 1.87 | % | 315,906 | 4,198 | 2.66 | % | ||||||||
| Equity Securities | 31,789 | 333 | 2.10 | % | 34,813 | 265 | 1.52 | % | ||||||||
| Federal Funds Sold and Securities Purchased under Agreements to Resell | 15,847 | 33 | 0.37 | % | 6,884 | 17 | 0.49 | % | ||||||||
| Term Federal Funds Sold | 98,434 | 493 | 0.94 | % | 16,713 | 45 | 0.54 | % | ||||||||
| Interest-Bearing Deposits in Other Banks | 98,007 | 127 | 0.26 | % | 119,481 | 168 | 0.28 | % | ||||||||
| Total Interest-Earning Assets | 2,659,085 | 60,368 | 4.57 | % | 2,848,313 | 66,535 | 4.71 | % | ||||||||
| Noninterest-Earning Assets: | ||||||||||||||||
| Cash and Cash Equivalents | 70,204 | 68,115 | ||||||||||||||
| Allowance for Loan Losses | (83,557 | ) | (135,411 | ) | ||||||||||||
| Other Assets |
86,762 |
90,402 | ||||||||||||||
| Total Noninterest-Earning Assets |
73,409 |
23,106 | ||||||||||||||
| TOTAL ASSETS |
2,732,494 |
2,871,419 | ||||||||||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||
| Deposits: | ||||||||||||||||
| Savings | 108,681 | 1,159 | 2.14 | % | 112,398 | 1,483 | 2.66 | % | ||||||||
| Money Market Checking and NOW Accounts | 490,163 | 1,454 | 0.60 | % | 468,875 | 2,012 | 0.87 | % | ||||||||
| Time Deposits of $100,000 or More | 720,869 | 4,511 | 1.26 | % | 988,336 | 7,536 | 1.54 | % | ||||||||
| Other Time Deposits | 343,195 | 1,747 | 1.02 | % | 295,518 | 1,896 | 1.29 | % | ||||||||
| FHLB Advances | 3,681 | 86 | 4.64 | % | 130,030 | 572 | 0.89 | % | ||||||||
| Other Borrowings | - | 1 | 0.00 | % | 1,384 | 1 | 0.15 | % | ||||||||
| Junior Subordinated Debentures | 82,406 | 1,596 | 3.89 | % | 82,406 | 1,409 | 3.45 | % | ||||||||
| Total Interest-Bearing Liabilities | 1,748,995 | 10,554 | 1.21 | % | 2,078,947 | 14,909 | 1.45 | % | ||||||||
| Noninterest-Bearing Liabilities: | ||||||||||||||||
| Demand Deposits | 659,825 | 578,172 | ||||||||||||||
| Other Liabilities | 29,573 | 30,394 | ||||||||||||||
| Total Noninterest-Bearing Liabilities | 689,398 | 608,566 | ||||||||||||||
| Total Liabilities | 2,438,393 | 2,687,513 | ||||||||||||||
| Stockholders' Equity |
294,101 |
183,906 | ||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
2,732,494 |
2,871,419 | ||||||||||||||
| NET INTEREST INCOME | 49,814 | 51,626 | ||||||||||||||
| COST OF DEPOSITS | 0.77 | % | 1.07 | % | ||||||||||||
| NET INTEREST SPREAD | 3.36 | % | 3.26 | % | ||||||||||||
| NET INTEREST MARGIN | 3.77 | % | 3.66 | % | ||||||||||||
Non-GAAP Financial Measures
Tangible Common Equity to Tangible Assets Ratio
Tangible common equity to tangible assets ratio is supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles (“GAAP”). This non-GAAP measure is used by management in the analysis of Hanmi Financial and Hanmi Bank’s capital strength. Tangible equity is calculated by subtracting goodwill and other intangible assets from total stockholders’ equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from total stockholders’ equity when assessing the capital adequacy of a financial institution. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital strength of Hanmi Financial and Hanmi Bank. This disclosure should not be viewed as a substitution for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.
The following table reconciles this non-GAAP performance measure to the GAAP performance measure for the periods indicated:
| HANMI FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||
|
NON-GAAP FINANCIAL MEASURES (Unaudited) |
||||||||||||
| TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO | ||||||||||||
| 6/30/2012 | 3/31/2012 | 6/30/2011 | ||||||||||
| (In Thousands) | ||||||||||||
| Total Assets | $ |
2,846,652 |
$ | 2,771,471 | $ | 2,710,835 | ||||||
| Less Other Intangible Assets | (1,417 | ) | (1,462 | ) | (1,825 | ) | ||||||
| Tangible Assets | $ |
2,845,235 |
$ | 2,770,009 | $ | 2,709,010 | ||||||
| Total Stockholders' Equity | $ |
348,456 |
$ | 293,718 | $ | 198,365 | ||||||
| Less Other Intangible Assets | (1,417 | ) | (1,462 | ) | (1,825 | ) | ||||||
| Tangible Stockholders' Equity | $ |
347,039 |
$ | 292,256 | $ | 196,540 | ||||||
| Total Stockholders' Equity to Total Assets Ratio |
12.24 |
% | 10.60 | % | 7.32 | % | ||||||
| Tangible Common Equity to Tangible Assets Ratio |
12.20 |
% | 10.55 | % | 7.26 | % | ||||||
| Common Shares Outstanding | 31,489,201 | 31,489,201 | 18,907,299 | |||||||||
| Tangible Common Equity Per Common Share | $ |
11.02 |
$ | 9.28 | $ | 10.39 | ||||||
| HANMI BANK | ||||||||||||
|
NON-GAAP FINANCIAL MEASURES (Unaudited) |
||||||||||||
| TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO | ||||||||||||
| 6/30/2012 | 3/31/2012 | 6/30/2011 | ||||||||||
| (In Thousands) | ||||||||||||
| Total Assets | $ |
2,841,441 |
$ | 2,766,780 | $ | 2,705,997 | ||||||
| Less Other Intangible Assets | — | (3 | ) | (184 | ) | |||||||
| Tangible Assets | $ |
2,841,441 |
$ | 2,766,777 | $ | 2,705,813 | ||||||
| Total Stockholders' Equity | $ |
407,407 |
$ | 351,677 | $ | 279,712 | ||||||
| Less Other Intangible Assets | — | (3 | ) | (184 | ) | |||||||
| Tangible Stockholders' Equity | $ |
407,407 |
$ | 351,674 | $ | 279,528 | ||||||
| Total Stockholders' Equity to Total Assets Ratio |
14.34 |
% | 12.71 | % | 10.34 | % | ||||||
| Tangible Common Equity to Tangible Assets Ratio |
14.34 |
% | 12.71 | % | 10.33 | % | ||||||